Steve Cohen's Week Is Looking Up

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Yes, tje jury has been selected for a trial against the guy who is alleged to have orchestrated “the most lucrative insider trading scheme ever," AKA his former employee, Mathew Martoma. Yes, Frontline just aired a special on him that was not exactly flattering. Yes, he just had to slash the price of his Manhattan penthouse to $98 million from $115 million. Yes, his ex-wife is still alive. But thanks to a li'l company Intercept Pharmaceuticals Inc, he just scored himself 200 million pick-me-ups.

The hedge fund owned almost 1 million Intercept shares as of Nov. 7, translating to an intraday gain of more than $200 million if the stake is unchanged, according to data compiled by Bloomberg. Other winners of the Intercept rally include Fidelity, the second-biggest U.S. mutual fund manager, and OrbiMed Advisors LLC. Intercept said today that a trial of its liver disease drug worked well enough for the testing to be stopped. Shares in the company had rallied 54 percent in the six months through yesterday as investors bought the stock in anticipation of a positive result...Intercept, which is based in New York, soared 283 percent to $277.02 at 3:02 p.m., its largest-ever increase. Trading volume soared to a record 6.2 million shares, almost 30-fold the three-month average.

Cohen’s SAC Gains More Than $200 Million on Intercept [Bloomberg]

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Steve Cohen Bought Himself A Little Pick-Me-Up

As you may have heard, the last number of months have been a bit tough on hedge fund manager Steve Cohen. In November, one of his former employees, Mathew Martoma, was accused of orchestrating "the most lucrative insider trading scheme ever," in a criminal complaint in which Cohen was referenced as Portfolio Manager A. A week later, the Times lopped 21,000 square feet off his house. Earlier this month, he had the pleasure of setting the record for the largest insider trading fine ever, at $614 million, a sum that does not even put this whole thing behind him, as the settlement "doesn't preclude the Securities and Exchange Commission from pursuing Cohen himself in the future." So you'll excuse the Big Guy if he felt the need to indulge in a little retail therapy recently.